Skip to main content

tv   Closing Bell With Maria Bartiromo  CNBC  May 5, 2010 4:00pm-5:00pm EDT

4:00 pm
and let's look at the april retail sales and what is important? well, interesting numbers with a good start to april and the last two weeks have been weaker than what people expected, but there will not be any dramatic downgrades. a number of traders mentioned that the second half of the year, currency, higher apparel costs are important headwinds for the big international retailers. look the names. guess, big international sales and tiffany, abercrombie, and fossil who have big international sales and those companies have been under pressure for the last couple of days and american eagle to the topside today. what about the energy stocks? well, bp, and transocean made nit positive territory after a couple of difficult days. and anadarco petroleum on the negative side as well as some of the big natural gas stocks which were the notably weak ones,
4:01 pm
including eog and cabot. and what about the bigger names with homebuilders for example, to downside, 3% or 4% today. maria, back to you. >> thank you, bob. back to the breaking news. julia has the breaking news with cbs numbers. julia boorstin with the numbers. >> thank you, maria. we have adjusted eps coming in 5% per share which is right in line with expectations. revenue at $3.5 billion for the quarter up 12% from the earlier quarter which is higher than the expected revenue that we were anticipating. now, if we break this down, division by division, as expected, the cable networks have made progress over the last year. we have $2.08 billion in revenue for the quarter in the entertainment division, and the content group which includes local broadcasting and outdoor is $2.6 billion up from 3.2 billion from the year ago
4:02 pm
period, so this is progress and clearly driven by improvements in advertisements, and that is story with time warner and head it yesterday with newscorp, and there will be a couple of questions on the conference call given the state of the advertising market, and what to expect from advertising going forward and how cbs is rebuying the debt, and also what the full outlook is for the year. we will dig into numbers and see if we can look at the $3.5 billion number which is slightly higher than expectations. maria, back over to you. >> once again, the nasdaq is under some selling pressure today. we are looking at higher expenses on a number of levels, because of commodities. let's get to mike huckman who is at the nasdaq with that story. >> yes, taking the brunlt of it today down 0.09 yesterday, but not the case yesterday when they suffered the biggest point drop in 15 months. so while the nasdaq has been the
4:03 pm
biggest loser among the dow and the s&p 500, over the past couple of trading sessions, so far this year, it is still the biggest winner, up 5% to 6% so far in 2010, but once again, it was techs taking the tech-heavy nasdaq lower today, and the semi-conductor index took 4.5% hit yesterday, and another 1.0% decline today. still, ups and downs though in tech land as far as stocks were concerned. yahoo! was up, and intel was down. dell was higher, and apple was lower yet again. at least a few stocks also got taken down pretty significantly, i might add on the earnings reports. garmin recalculated the route with a 9% turn for the worse. and newscorp not looking foxy with a 5% decline on top of that and a jpmorgan downgrade on it today, and onyx not living up to
4:04 pm
the namesake staying in the black, but over to the red today, down 2.09%. and the ad agency charm was not charmed at all. it priced at the low end of the expected range and then it went down about 0.50 in the day session. and two more ipos are to expected to be priced tomorrow, and one of them is a realty trust to be expected down below the normal range. and now over to sharon at the exchange. >> well, we are continuing to watch this fire burning near san diego, i should say excuse me, san antonio, texas, the refinery there, and there was an explosion of a fuel truck outside of the age refinery which caused a chain of explosions. we are looking at those still burning here. there is -- this is a small refinery though, with only 12,000 barrels per day and processes crude oil making it into jet fuel and diesel fuel. we are not seeing a price reaction, because it is a again
4:05 pm
a small refinery, but not much of a price reaction, because the demand concerns are outweighing everything in the market. we are looking at what is happening with the greece situation, and the possible contagions here, and that is impacting the fact that we are also looking at the u.s. demand down sharply over the first four months of the year compared to the stame period a year ago. and when you look at the price of oil per barrel going down, it has to do with the weak innocence the dollar and the euro and we will monitor that, because that could portend a bigger sell-off tomorrow, and the barrels are a $75 handle, but there is not much support between the $78 and $75 level. back to you. >> important point, sharon, thank you for that. sharon epperson. the market hit volatile trading today, but they finished off of the lows of the session, so with the dow below the 11,000 mark, what do you need to know to invest and treat this as a buying opportunity or a elling is one? joining me to talk about that is
4:06 pm
mark luchini with sharon ketinger from chaseway capital. sharon, how are you investing today? tell us about your allocation? >> we are moving more into the what has scared more investors the euro zone, because many of the undervalued opportunities in some cases very safe investments are located there, and the power that this greece problem has cast over all of europe has created tremendous opportunity. >> that is terrific, and interesting take on things. are you not worried about the different economies? the debt issue in greece and the possibility of a ripple effect? >> well, we believe it is the in the euro zone's best interest to make sure that the peripheral countries make it through the refinancing, and as a result, we are not worried about the overall euro zone, the euro as a
4:07 pm
currency may depreciate modestly, but the stocks will benefit from the depreciation. >> do you agree with that, mark? where are you in the market? >> well, we have a globally-geared portfolio and our bias is with high-quality large u.s. cap names benefiting from the globally-geared growth coming from emerging markets, but nonetheless, we still think that companies who have their flag domiciled in europe and still generate an excess amount of profitability from the same emerging markets are going to weather the environment, and pick up the tailwind vis-a-vis the dollar. >> so, we have quarterly sector reports here, and the leading industry today, consumer discretionary is up 5% and followed by industrials up 2.8% and followed by energy 2.7% and we will show you the losers today, but would you buy into consumer discretionary in the u.s.? sarah, tell me about your notion of the u.s. and the most recent sell-off here? >> well, back to the euro region
4:08 pm
that has underperformed the u.s. to date. and where the u.s. is up, the euro is down in terms of the dollar terms, and the euro stocks are down nearly 20%, and that gap is too good to leave without take advantage of. so there are companies of great interest to us. for example eads, the boeing competitor who has a bright future of selling more aircraft and responsible for more than half of the world's mainline aircraft with no debt on the balance sheet, so that is compelling and overshadowing what we are seeing in the u.s. >> interesting. mark, what about the u.s.? are we going to see further selling this year? what do you think of the most recent sell-off is telling us about what is to come? >> well, it is interesting. we had a nice recovery from the lows today, and indicative of the underpinnings from the intercorporate profitability fund remain healthy and that will continue to support an
4:09 pm
environment ripe for equity market. not all equities, but we are seeing the risk on/risk off take place, and today we saw risk off take place, and via the stocks here in the u.s. i still think that the markets in the u.s. are going to benefit as we move throughout the course of the year through the fundamental underpinnings continuing to provide support for the equity markets albeit the trajectory from this point forward to the end of the year is nothing like, and in fact, much more pedestrian going forward than what we saw over the last 12 months. >> and what leads the trajectory? >> we like a couple of sectors among the best performers so far. one is industrials and another is technology. both offer tremendous operating leverage and benefiting from the global growth and again, franchises that are largely exposed to areas that are growing two to three times outside of the united states, and particularly the emerging market countries, so that is
4:10 pm
what we like to have our clients positioned. >> we will keep watching and by the way, the worst performing sector of the quarter to date is health care. sarah and mark, we will see you soon. we have breaking news on financial regulatory reform. out to washington and john harwood. john? >> maria, the first big amendment to financial regulation bill is almost done passing the senate's voting on it now, and that would strip out the $50 billion fund in advance of a liquidation of the the fund. some thought it was a honey pot as richard shelby called it. and chris dodd, the banking chairman, has agreed to take it out, and that will smooth the voting there. >> and john harwood with the latest there in washington. and the euro is hammered again because of the debt crisis in europe. why is our next guest increasing his relative position in the
4:11 pm
currency? you will want to hear this. you are watching cnbc, first in business worldwide. aflac is not more benefits at greater cost to your company insurance. aflac is not how do i fit it in my company's budget insurance. aflac is help protect and care for your employees at no cost to your company insurance. with aflac, your employees pay only for the coverage they want or need. and, the cost to you - nothing at all. if all you know about us is... duck: aflac! ...then you don't know quack. to find out why more businesses provide aflac, visit
4:12 pm
4:13 pm
4:14 pm
>> welcome back. demonstrations in greece turning deadly as tens of thousands are protesting the greek's austerity plan. simon is back with the report. simon, huge moves today. >> well, huge moves today, and bearish movement, and the fallout of being a member of the single currency while in distress is not being a to devalue or slash local interest rates and that human cost liable to tv screens in tv rooms around the world. in the public and private sector workers on general strike turning violent. they were using petro bombs and
4:15 pm
pelting the police, and firing bombs at a bank and in which three people were burned to death. outside of the greek parliament, police repeatedly beating back attempts to storm the session that was under way inside. the ruling socialist party trying to tighten the national sales tax to 23%. measures demanded by other european governments in return for the $145 billion cash lifeline for the next three years year yea years. in germany, chancellor angela merkel urging her own parliament to go through the bailout, saying it is a fork in the road and nothing less than the future of europe depended on their action. and news of a murder in the bank of athens led the investors toley the market. the greek market is now down 20% since the start of april. the risk of contagion to portugal hammered home by
4:16 pm
moody's announcing the rising likelihood, it will downgrade lisbon's credit rating. and spain's prime minister dismissed this as madness. it did not stop madrid's stocks from being hammered again today now down 12% in a month. maria, ominously, the general cost of borrowing for the banks across europe, and two of the biggest, deutsche in germany, and bmp in parabra in france remain under pressure. one bright spot for the markets is ahead of the general uk election on a 24-hour campaigning binge the opposition leader david cameron appears to be leading ahead of the others in the polls. the pound is under pressure so that one party will not have a majority in the london department to tackle britain's looming deficit, but an outright win tomorrow could see a positive reaction in the market when the ballot boxes there are sealed in over 24 hours' time.
4:17 pm
>> well, it is interesting, simon. let me ask you your take of the uk election. do you think that we will see a positive reaction because of cameron's policies or what will drive the reaction? >> well, we need one party to have an absolute majority to push through what they need to. and cameron has the time line on cuts slightly in advance and more importantly talking about cutting taxes, cutting spending, and i beg your pardon, cutting taxes and spending and rather than raising taxes in order to go, so in other words, the republican approach if i could use that terminology, but more of a republican approach to situation in the uk. >> i can understand the market reaction, and we will watch that and it is an exciting race. we will cover it here live. simon mentioned the euro at the lowest level in a year games at the dollar. here is where it is trading right now as we look at the chart at 1.28 breaking $1.30. while there is breaking concern
4:18 pm
over the long term for the weakness of the euro, many are contrarian. and with me is the manager of the merck currency fund, and also steve with the paribas retirement fund, axle weber. >> well, you have decreased your pressure here? >> well, obviously, greece has serious issues, and the euro zone has serious issues, but the debt problem is not a regional one but global one, and everybody spent too much money. and there is a fundamental different approach to how people address too much debt in the euro zone versus the anglo-saxon area. we heard in the uk, they may cut taxes, and in the u.s. we tried to spur growth at any cost, and in the euro zone, they know they can't get out of this with growth, so they have austerity measures in place. when push comes to shove in the
4:19 pm
euro zone, it is more difficult to spend money, and that is what is happening in the greek parliament right now. >> why would the euro change direction any time soon given the debt persisting? >> well, because in the euro zone, you are not as dependent on the financing efforts from abroad. the currency is dependent on the financing from abroad is very sensitive to economic growth. the u.s. has that problem, and australia with that problem, and japan does not finance its deficits from abroad and the yen is relatively immune from the lackluster economic growth, so ultimately if the european central bank stays on the course what we are going to have is w laissez economic growth, and they can thrive on the back of it. >> sebastian, how do you see it? >> we disagree. the euro is two zones, one that needs a lot of financing and another that doesn't. it gets the funding of the poor one to the greeks and the spanish and others from the say germany.
4:20 pm
that will not happen in the future and in the same time, the savings are falling, and they are not letting the currencies appreciate as they used to, and we have a saving issue, and that is issue for parts of the euro zone. and now at the same time the impact is significant and what we see on a day today basis and not second-by-second basis, but the euro is sold, sold, sold. and the guys buying it is probably the central banks and potentially out of asia and even as broadly securing quite a lot. >> yes. go ahead. >> the other guys are essentially short term hedge funds who make those mean reversion bets and think that every time your dollar collapses a lot and the yield curves don't lose much in the u.s. and the euro zone, then there is a big opportunity and they buy euro and they have been wrong repeatedly, and they will be wrong again. >> so you think it is dangerous to be long euros? >> yes, it is. especially if you try to pressure and squeeze it which is what is being attempted right
4:21 pm
now, the squeeze of the euro will push the dollar higher which is not a problem, but it will amplify the credit problem in the euro zone. it is a fiscal one, but the bigger problem is competitiveness. they are not, and very expensive in germany and france and blood and the currency has to go lower. >> axel, what about that? >> well, we have to separate the monetary from the fiscal issues, and the problems of europe are fiscal ones. on the monetary side, the central bank is far more restrained than the federal reserve, so it comes down to the fiscal side, and the french countries have major, major issues but because of the rest of the european zone may not provide as much funding as the countries expect, i do think that the rest of the euro zone, yes, they will look elsewhere and look for exporting opportunities and the weaker euro will help that. without a doubt, they have major, major problems in greece in particular and other
4:22 pm
countries as well, but right now, we are seeing the major inflation measures taken and portugal and spain are moving up with the spending cuts and sure that is going to have an impact on growth, but ultimately, it is going to heal a lot of the problems they have. that does not mean that greaece will ultimately not have a problem, because they will have a problem, and when these things iron out, greece will be seen in the contextt of what it is, and very small part of the euro zone, and in the meantime, of course, when the market is full force against one, then the negative for the euro, but at the same too if you look at the relative value basis we like the u.s. currency and the australian dollar as well, but everybody likes it as well, so you have to the take the risk and get some value right now in the euro. >> what about if portugal is downgraded and what if spain is next? does that change your mind, axel? >> well, spain is in a different situation. they have one of the lowest debt levels to the size of the
4:23 pm
economy. now, spain has an employment problem, and spain has housing bust, but spain is taking its problem seriously. they are a real country and they are not a corrupt disorganized country like greece is. portugal has been a bit sleepy, but they are waking up, and the issues are different and it does not have to spread, and by the way, the european central bank provides unlimited liquidity in the crisis, and if they do it, they can keep the market afloat, and the problems will be worked through, but it won't happen overnight. >> thank you, sebastian and axel. that is what makes the market. see you soon. up next the bear stearns cfo getting grilled by the crisis commission.
4:24 pm
4:25 pm
4:26 pm
welcome back. former bear stearns cfo jimmy kayne telling the commission that his firm's collapse was irrational behavior by the market. mary thompson is on capitol hill with the story. >> well, he said that the firm he ran for 15 years made him deeply shocked. he said that initially he bought into theory that short sellers conspired to bring down the investment bank.
4:27 pm
>> i heard the same rumors that everyone heard that the hedge funds are gathered together and ganged together and there was an uptick rule, and that was all part of a picture of a big fat goose walking down the lane that is about to get eaten up alive. >> cayne said he abandoned the theory, but the successor said he still believes that rumors brought down the 85-year-old firm. >> in my heart, i believe that there was some stuff going on. >> reporter: nonexecutive chairman in bears' final days, cayne had no answer for what he would do differently. he said that leverage might have been too high, but he downplayed the idea that equity investment might have saved the bank. he did blame rating agencies giving them a false sense of security about the housing market, whose downfall bear never saw coming. >> very few people, including people who are right in the
4:28 pm
middle of it as mr. mollinaro had any inkling and people who bet against the housing market, and few and far between, and they become legends. >> he was referring to the company's former cfo sam molinaro. and testifying in the final group was the s.e.c.'s inspector general david kotz who added to the group of people to blame for bear's downfall, and he said that the s.e.c. shared some of the blame because it failed to act on a number of red flags raised through a supervisory program about bear's leverage, the expose sure to the mortgage markets and the shortcomings in rising management. of course, had they aktsed on that, maybe things would have been different. maria, back to you. >> wow. meanwhile, goldman sachs's ceo lloyd blankfein reaching out to say that the firm remains focused on the business and not
4:29 pm
the distractions from the s.e.c. bertha coombs was on that conference call. >> well, mr. blank fifein did n take questions, but it was clearly to dispell any doubts that goldman puts clients first. he was sometimes in a combative tone testifying before congress assuring that the clients that they are not distracted by the s.e.c. fraud case, but focused on the client's needs and goldman is re-examining how the ethics and values came to be questioned. >> we are responding not merely by saying we want to persuade everybody that we are right and not wrong, and we want to use it an an opportunity to investigate what we need to do better and should do better. we want to be the leader in all of the elements, also, like ethics and resolve and putting the clients first. >> reporter: blankfein also defended the firm's action in the abacus deal, and the derivatives at the heart of the
4:30 pm
case saying it was structured to give the clients involved to give them exposures to the markets they were not ever designed as products to fail. >> as one side of that, one side made money and the other side lost money, and it is not because the instrument failed or certainly not because the instrument was designed to fail. >> now, though, the call happened after fitch lowered the outlook on goldman's bonds to negative today, there was no talk about that on the call, itself. blankfein pledged to continue to reach out to clients and answer their questions, reassure them, and saying, maria, he will do more calls like this one and as you know, he has never been generally on the analyst calls for earnings. this is the first time he has done this type of call clearly, goldman trying to be out front, and very proactive with the clients. >> bertha, what did he say about the possibility of a settlement? >> didn't address that at all.
4:31 pm
this is one of those things where the head of the private wealth group basically raised some of the issues that clients have been telling him, and there was no questio&a, so maybe a dit call if clients could have asked the questions one-on-one. >> thank you, bertha coombs with the latest there. and still to come, the senate is voting on the latest amendments to the financial reform bills. john harwood will be along with the details of that. and do people at the heart of the m&a world think more deals are in the pipeline, and what is the affect on equities? back in a moment. here is a look at today's winners and losers. over 20 million customers have put their faith in sun life financial. we should be a household name. and we will be. so you're suggesting that we change our name
4:32 pm
from florida, the sunshine state, to...? florida -- the sun life state. the posters will be so cool. sooner or later, you'll know our name. sun life financial.
4:33 pm
4:34 pm
welcome back. the senate is starting to vote on the regulation reform bill, and chief correspondent john harwood joins me with more. >> well, as you know, maria, the
4:35 pm
senate works at its own pace and things work slower than many realms of life including wall street, but we have what passed as progress when a bipartisan majority approved an amendment agreed upon by richard shelby and chris dodd, the chairman of the banking committee to remove the $50 million fund from the so-called too big to fail part of the bill. richard shelby said it removed one obstacle, but it is not the only one. >> despite government resolution in a crisis this over 1,500 bill contains a broad reach into the global global financial system of the economy. now that we are over this particular hurdle, we will address many conditional concerns in the coming days. >> reporter: here are some of to other additional concerns. one is the shape of the consumer protection sections of the bill, and where that consumer protection would be housed and
4:36 pm
how much enforcement authority that agency should have and whether it could override state laws. and the definition of proprietary trading which the so-called volcker rule provision of the bill wants to take away from wall street institutions, and finally the issue of the derivatives swaps desk. you had blanche lincoln on the floor defending that proveision but the obama administration is not going w ing to it, and both democra democrats, and republicans want to take it out, but who is willing to stand up to say they are against what the banks are for. >> not a big position there, john. well, if we were to see the exchange and the point is to make the driftive derivatives transparent, and does that move to chicago? >> well, some agree it could, but this could move offshore,
4:37 pm
which is a point that the democrat mark warner made on the floor the other day and sheila bair supporting the position that wall street has taken and those who don't like the provision, she wrote a letter over the weekend saying it would push the derivatives shades into the shadows outside of regulation, and that is where the fine line is on this provision. i think that sheila bair's position and that of the administration and wall street will prevail, but the question is how do you get there? >> interesting, because a lot of people are saying it takes a big piece of business out of new york and creates a major hub in chicago, if it goes the way it is being talked about. the other question, i have for you is defining proprietary trading, and let's talk about this, john. because, isn't this one of the key barriers to that becoming law? they don't know how to define proprietary trading and how do you know if a bank is acting on their own behalf or on behalf of a customer or, and they have the certain security on the books because they have to be on the other side of the customer?
4:38 pm
so, how will they define proprietary trading? >> well, it is a good question and one of the reasons that the lobbyists for the industry tell me it will not be clarified in the legislation itself, but there will be an understanding that regulators will make a difference and here is the key point they are trying to distinguish. one is that proprietary trading bay firm that hedges risks when doing trades for a client, and the other is trading their own books to try to make money for the firm. the latter is what the volcker rule intends to get rid of, and the former, that s when you conduct a proprietary trade only to compensate for something that you have done for a client, that is what wall street thinks is the essential to doing business the way we are accustomed to seeing it. there is sympathy to that within the obama administration, and maybe it will be worked out in the rule-making process and not the bill, itself. >> well, that is the thing, because say your x-y-z customer, and i'm x-y-z firm and you come to me and say, look, i need to sell 1 million shares of abc and
4:39 pm
maybe i take on that 1 million shares, but it is sitting on my balance sheet, and at some point i want to sell it. >> that is precisely the point. that is why the firms say they need to hedge that risk. >> aye, it is hard to define. john, thanks. john harwood in washington as always. up next, continental and united and hewlett-packard and palm, and what else is in the pipeline in the big moves of m&a and what does that mean for the markets? we will talk to some of to big dealmakers coming up. does two jobs... at once. one: kills weeds to the root. two: forms a barrier, preventing new ones for up to four months. roundup extended control.
4:40 pm
4:41 pm
4:42 pm
all right. we want to show you a chart of cbs stock which is down 3% in the extended hours here. on the heels of the numbers we brought you earlier on the quarter of people selling the stock on the heels of those earnings out of the quarter on cbs. $15.02 a share. and last traded in the extended trading session, and today, after reporting earnings in line with the estimates and clearly indicating some weak innocennes certain areas. and a improving m&a environment is given by a.c. reuters and here to join us is michael carr, soon to be the chairman of corporate growth. michael, nice to have you on the program. >> thank you, maria. nice to be here. >> and 97% of the respondents to the survey identify the current market as a buyer's market, and what does that mean? where do they expect the deals to be done? >> well, right now, we are
4:43 pm
seeing a lot of opportunity in the health care as well as the business service sector, and also some opportunities in the government-based business. overall, the excitement here at our annual conferences is outstanding. additions in the metrics that you mentioned 84% of the members believe that m.&a is going to improve so that the balance of 2010 is looking fairly bright for m&a. >> we are looking at a graph where we have seen the consolidation, and health care, and life sciences, and manufacturing and distribution, and which sector dos you think will consolidate mostly in the coming days and years? >> well, right now, those two sectors will continue to have the most activity, at least for the balance of this year. beginning in 2011, we anticipate that manufacturing and distribution will also do well. that is yet to be seen. but, the other two are the primary focus for most private equity funds right now. >> are the deals happening,
4:44 pm
because of pressure on the business or just because of this need for growth given the growth is coming international? much of the growth happening outside of the united states or because these sectors are pressured and they are being forced to consolidate? >> i think that it is more that the business is beginning to stabilize. for example, some of the statistics that came out of the survey indicated that over 64% of private equity-owned businesses plan on maintaining staffing levels going forward and 70% of all portfolio businesses showing greater than last year. and we are seeing stabilization and two to three quarters of flat earnings or increasing earnings, and the businesses, there is pent-up demand on the weak side, but also some founders and business owners are looking to exit which they have not been able to do. >> and where is the leverage to buyout compared to two years ago? tell me where the structure of the deal has changed?
4:45 pm
>> well, the structure of the deal has changed, because it is difficult to get anything done. our members over half felt that the credit markets were impediment to getting the deal down, and that is down to 27% now. so once the credit markets loosened up, the leverage levels are approaching three times the middle market. half of our members think it will increase, and additional leverage will be available. although, we are seeing a significant amount of equity put into the deals. most feel that 40% of equity if not more will go into them. this is going to be a tremendous drop for the rest of the year. >> so you have a willing buyer, obviously, in many cases, a willing seller, and is the biggest challenge today the access to capital? >> no, again, there is $500 billion of private equity that is dry powder right now. the capital is there, but the biggest imped dit that we are seeing absent the quality deals is the seller not willing to
4:46 pm
accept the price being offered, and that is the process of a free market process, and that will come together, and the sellers and the buyers will come to agreement in value, and more deals will be done for the balance of the year. >> i see. in terms of the prices, what would you say per pricing per deals today, how has that changed? >> well, i would say it is sector-specific. some of the multiples for enterprise values and the health care companies are still approaching high single digits if not double digits, and other businesses will have a harder time even being sold and let alone at a value that an owner may be looking for. so sector specific, and the ones who are in high demand as we mentioned earlier, and the business services, and health care to a lesser degree to manufacturing distribution, and the numbers will vary, and those two main sectors will be quite nice. >> and when you look at the private equity fields, you have the large firms, and large deals, you know, and then you have a lot of smaller and
4:47 pm
mid-cap deals, and where is the most activity happening right now? >> that is an excellent point. our association serves businesses from 10 million of revenue up to $1 billion of revenue. we are seeing small deals to up to the $20 billion, and we are going to see the bigger deals moving further into 2010 and they have a consistent positive run rate where the value can be determined from. so right now, it is on the smaller end and it will certainly increase to the larger end as the year goes by. >> all right. we will leave it there. great to have you on the program, michael. see you soon, michael carr, joining us. take a break and then matt nesto is going to be along the break down all of the day's afterhour earnings. you have cbs down on the heels of its quarterly numbers and as well as the movers and shapers coming up. stay with us. >> time forus. >> announcer: time now for going
4:48 pm
global europe. hi, everybody. i'm louisa bojesen. here are the stories we're watching in europe tomorrow. the day after riots leave three people dead in athens, german lawmakers continue to debate the rescue plan for greece. the uk voters head to the polls. could this general election spell the end of labor's 13-year reign? plus, the big movers and shakers at the ecb are in portugal, where they'll be deciding on european interest rates. we are there too of course. guy johnson will be covering the decision from lisbon live. tune in to cnbc world to catch all of the action from overseas. at cnbc's european headquarters, i'm louisa bojesen, going global with your money.
4:49 pm
4:50 pm
4:51 pm
welcome back. let's get a check on some of the day's top after-hours movers. time for that. we bring in cnbc's matt nesto. got some real action in cbs, but a handful of others as well, right, matt? >> yeah, we did. we did a great job covering cbs. that certainly is going to be
4:52 pm
weak. we've got a lot of media coming out tomorrow as well. cablevision for one. check out prudential here. $1.49 versus $1.31. their international business was strong, their investments were strong, and their assets under management were up 28%. the stock, you can see little change in the after-hours as traders digest the news there. symantec looks to be about 5% higher, 40 cents a share versus 37. 3% revenue growth was in line. but the big bottom line beat there pushing that one up in the after-hours. jds uniphase and bmc software, though, both sharply lower, down about 5%. right now jds beat by a penny. 10 cents versus 9. but the revenues were light and they see their fourth quarter in line, if you will. and that was not being taken very well, as you can see, with a 7 1/2% giveback. i mentioned bmc, down 5%. 65 cents a share versus a 70-cent estimate. there you go. 4% decline in bmc. their revenues were up just 2 1/2%.
4:53 pm
they also missed there with an in-line guidance for the quarter. and maria, real quickly, freddie mac out with some staggering numbers in a federal filing. $6.7 billion loss. and they say they are going to need another $10.6 billion in funding capital. but they think they have adequate funding to, well, go through the end of the year. there you go. >> all right, matt. thanks. matt nesto with the latest there. investors paying close attention to some more key readings on the economy and in particular the state of the consumer. that's out tomorrow. we'll tell you what to expect, get you set up for the opening bell, also tell you what happened when enron came to broadway. you're watching cnbc, first in business worldwide. thing as taking a chance? as having to decide to go for it? at the hartford, we help businesses of all kinds... feel confident doing what they do best. by protecting your business, your property, your people. you've counted on us for 200 years.
4:54 pm
let's embrace tomorrow. and with the hartford behind you, achieve what's ahead of you. ♪
4:55 pm
4:56 pm
>> announcer: here's what to watch for tomorrow. rick santelli on the floor of the cme group. tune in tomorrow at 7:00 and 7:45 eastern. the first the monetary policy committee of the bank of england statement. and of course the latter the ecb. and look for a lot of fun in those press conferences but no rate changes in either. >> i'm bob pisani at the new york stock exchange. we'll be watching retail sales tomorrow. sales are expected to increase 2% compared to the same period last year. not as good as in march but
4:57 pm
still pretty good considering most of the easter sales occurred in march and there was wetter weather in april. well, finally today, after just 15 regular performances "enron" the play is closing on broadway. this coming sunday. it is closing. the $4 million production has suffered from weak ticket sales and its failure yesterday to get a tony nomination for best play. it appears to have sealed the fate. enron uses a variety of theatrical techniques including songs, video, dance, and dinosaur masks to tell the story of enron's rise and fall a decade ago. the original british production is a big hit. it's been running in london since september and has been in new york only a short time. before we go, take a look at the day on wall street. and it was a downer but well off the lows of the afternoon with the dow jones industrial average down today on the session by about 60 points. .5%. 10,866. the nasdaq also gave up some ground today, about 1%, 22 points lower at 2,402. and the s&p 500 tonight down about 7 3/4 points.
4:58 pm
that's 2/3 of 1%. at 1165. did lloyd blankfein stop the bleeding? "fast money's" up next. they've got a breakdown of the goldman ceo's plea to clients to stay put. thanks for watching. i'll see you tomorrow on "closing bell." have a fantastic night. here's "fast money." live from the nasdaq marketsite, this is "fast money." fear wins over greed once again as the euro fell to its low of the day. oil rig stocks rolled over. and lloyd blankfein couldn't stop the bleeding over at goldman sachs. we'll tell you what he said on an exclusive call to clients in just a moment. but first, pete, are you buying or are you selling here? >> well, i think right now you touched on at the beginning is really completely accurate. you're talking about the volatility index definitely indicating a level of what people are perceived as some definite fear in the marketplace. we talked about 25% today. at one point we were over 27%. 20 million contracts again today on the options side. day two of that. i'll tell you what. now i think when you're looking at the volatility index you look to 22 1/2. that's right now your level of
4:59 pm
support. that's the ten-day average. so keep an eye on that. am i buying or selling in i think there are some opportunities out there. i bought a little bit early on monday. i think we'll go into that later. in some of the spaces. the dip produced today but i was definitely a day early there. but there are names out there that still work. >> i think there was a clear technical challenge of the 1150 level in the s&p. i think if you look right now sector by sector, we're going to talk about the market tonight, this is not a binary market risk on risk off. there are opportunities out there. when i look at the materials space, the industrial space, a name like freeport-mcmoran that guy mentioned last night, it got down to about 67.90-ish today and had a nice intraday reversal. so if you look at the material space, to me that's a sector that is closer to reaching its trough than some of the other sectors and is attractive to me. >> joe, you mentioned a changing of the market. you know, it's not a binary market anymore. >> it's not. >> and here's why this might be different this time around. i know you hear that a lot. but take a look at this chart


info Stream Only

Uploaded by TV Archive on